House prices, house prices, house prices!
What will the New Year Bring?
House prices were at the forefront of discussion once again last month as Rightmove announced that asking prices saw a fall of £2,044 (0.6%) which is the largest fall since January 2021. We take a look at what caused this minor dip in the market and what this could mean for buyers, sellers, landlords, and investors moving forwards.
“There is still not enough housing stock to supply many sectors of both the sale and letting property market.”
James Berry MNAEA
What is the new national average property price?
The new national average asking price dipped to £342,401 in November from £344,445 in October, although this is still more than 6% higher than a year ago. We believe the slight fall is caused by keen sellers looking to attract buyers and price property attractively. It’s also a normal dip we see this time of the year. We expect this downward price trend to be relatively short-lived.
“The net result as we approach the start of the 2022 market is the lowest ever available stock of property for sale per estate agency branch, yet with ongoing high buyer demand,” Tim Bannister, Rightmove’s director of property data, said. For this reason, it’s likley house prices will continue to rise, in line with this demand.
Is this a price dip?
According to Rightmove, this slight dip in asking prices is only expected to last until Christmas, so there’s a small window of opportunity for buyers looking to snag a deal. Then, typically we see a ‘Boxing Day boom’ in demand. It’s an exciting 24-hour period in the property cycle when online searches for properties skyrocket – millions of searches are expected on Rightmove between December 26th and New Year’s Day. So, if you’re looking to sell, you should make the most of this opportunity. In fact, Rightmove reported a jump of 54%* in visits to the site on the day after Christmas. That’s 54% more potential buyers for your property.
With Christmas coming up fast, some sellers might be tempted to put off the process of their home sale until the New Year. However, Boxing Day is historically the start of a very busy period. Many people have decided they want to spend their next Christmas in new surroundings – and this leads to a yearly spike in demand on Boxing Day. Whilst some agents are winding down for the festive period, there are some who will help you take advantage of this seasonal activity.
Is now a good time to put my home up for sale or should I wait for the New Year?
Even if you don’t want to sell until 2022, there is a good case for putting your home on the market now. An experienced agent can prepare the marketing of your home ahead of time, organise your photos (minus the Christmas tree) and then launch your property listing to millions of potential buyers in time for the browsing boom. You need to plan ahead – and don’t worry about viewings; We can organise these to suit you. If you don’t want to start viewings until January, then you don’t have to.
The New Year will bring a new market but house sales are not instant, buyers will have plenty of time to review the market before they exchange contracts.
A house without Christmas Decorations, and family vehicles will look more spacious for those looking from the outside.
It really depends on what suits you better, be organised and get photos early or action in January. We are happy with either.
What should landlords know about rental prices and tenant demand?
It’s good news for landlords as rental prices continue to remain high. There’s no doubt that rising interest rates will impact the market slightly and may lead to a correction – a correction in demand, not in prices. According to Homelet Rental Index, the average rental price for a new tenancy in the UK was £1,059 per calendar month, which is up by 8.7%** from last year. We are seeing the increasing demand is particularly prevalent in North Bedfordshire.
*Rightmove House Price Index, November 2021
**Homelet Rental Index, November 2021